Two main drivers for the DXY over the last couple of weeks / months are:
Interest rate expectations
Worse currency performances by the EURO JPY
However, the weekly graph of DXY is in extreme overbaught territories with the TD indicator currently on a 9
Also the weekly graph of the DXY has a TD indicator of 9
Stochastics and RSI is also in overbaught territories
We are getting close the the DXY top of 2 years ago.
This most probably means that we will get a top in the DXY over the remainder of April.
Causes for reversal in DXY
Though interest rate hike expectations are relevant, inflation is far to high for the amount of hikes the FED will be able to inject as the US cannot afford, for many reasons, too much higher rates.
Inflation expectations are even higher and sticky inflation basket items, are moving even higher.
Interest rate expectations
Worse currency performances by the EURO JPY
However, the weekly graph of DXY is in extreme overbaught territories with the TD indicator currently on a 9
Also the weekly graph of the DXY has a TD indicator of 9
Stochastics and RSI is also in overbaught territories
We are getting close the the DXY top of 2 years ago.
This most probably means that we will get a top in the DXY over the remainder of April.
Causes for reversal in DXY
Though interest rate hike expectations are relevant, inflation is far to high for the amount of hikes the FED will be able to inject as the US cannot afford, for many reasons, too much higher rates.
Inflation expectations are even higher and sticky inflation basket items, are moving even higher.